Africa Finance Corporation (AFC), Africa’s infrastructure solutions provider, has committed a €108.3 million ($123 million) sovereign-backed financing facility for the Government of Togo, supporting one of the country’s most ambitious agricultural modernization initiatives.

The transaction marks AFC’s first sovereign investment in Togo and underscores growing efforts across Africa to improve agricultural productivity amid climate pressures, supply chain disruptions and rising food costs.

The financing will support Togo’s Programme de Modernisation de l’Agriculture Togolaise (ProMAT), a national strategy designed to modernize farming, increase crop production and accelerate agricultural commercialization.

Major investment in mechanization and irrigation

Structured with a 10-year tenor, the facility will fund the acquisition and deployment of critical agricultural equipment nationwide. The package includes 2,126 tractor and trailer sets, 1,020 seeding and harvesting machines, 930 irrigation units and 95 water supply systems.

The investment aims to tackle long-standing challenges facing Togolese farmers, particularly limited access to mechanization and irrigation infrastructure. Improved equipment availability is expected to increase crop yields, expand market participation and create employment opportunities across the agricultural value chain.

Agriculture remains vital to Togo’s economy

Agriculture accounts for approximately 40% of Togo’s gross domestic product and employs nearly 60% of the workforce. Yet productivity remains constrained by low adoption of modern farming inputs and limited irrigation access.

Only 37% of agricultural households currently use fertilizer, while just 8% utilize improved seeds. Irrigation coverage remains below 1%, highlighting significant opportunities for modernization and growth.

AFC expands strategic financing across Africa

“Food security has become an increasingly urgent priority for African countries as global supply chains become more volatile and climate-related risks intensify,” said AFC President and Chief Executive Officer Samaila Zubairu.

Founded in 2007, AFC has invested more than $19 billion across 36 African countries and now counts 48 member states. The corporation has become a leading provider of infrastructure and sovereign financing solutions spanning energy, transport, telecommunications, natural resources and industrial development.

The Togo transaction further strengthens AFC’s position as a strategic financing partner for African governments, following recent sovereign financing arrangements totaling approximately $2.5 billion for countries including Nigeria, Angola, Côte d’Ivoire and Egypt.

As African nations prioritize food security and economic resilience, Togo’s latest agricultural investment signals a broader shift toward modern farming systems capable of driving sustainable growth and reducing dependence on food imports.